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Note 12 - Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Disclosure Text Block [Abstract]  
Note 12 - Shareholders' Equity

NOTE 12 – SHAREHOLDERS’ EQUITY

 

We have authorized capital stock consisting of 100,000,000 shares of $0.0001 par value common stock and 400,000 shares of $0.0001 par value preferred stock. At June 30, 2019 and December 31, 2018, we had 63,098,055 and 57,116,055 shares of common stock issued and outstanding, respectively, and no shares of preferred stock issued and outstanding.

 

During January 2019, the Company issued 32,000 shares to Patrick Tang for compensation through March 31, 2019 and issued 200,000 shares to John MacKay as a signing bonus. The Company recognized share-based compensation of $46,080 and $248,000, respectively, related to these issuances. The value was based on the fair value of the Company’s common stock.

 

On February 14, 2019, the Company issued 2,350,000 shares to EcoXtraction LLC for the asset acquisition as described in Note 5. The shares were valued at $1.29 per share for a total valuation of $3,031,500. The value was based on the fair value of the Company’s common stock.

 

On April 9, 2019, effective as of April 16, 2019, the Company entered into a one-year consulting agreement with Aston Capital where it agreed to issue to Mr. Kwan an aggregate of 250,000 shares of the Company’s common stock, par value $0.0001 and granted to Mr. Kwan options to purchase an aggregate of 250,000 shares of common stock of the Company at a strike price of $0.65 per share. The shares issued were valued at $162,500 based on the $0.65 fair value of the stock on April 9, 2019 and were expensed immediately due to no ongoing service requirement. The options were valued at $152,441 and vest over two years. The Company recognized expense of $16,683 for the three months ended June 30, 2019.

 

On April 9, 2019, the Company issued 25,000 shares to Ole Sigetty for compensation through the quarter ended June 30, 2019. The Company recognized share-based compensation during the quarter ended June 30, 2019 of $16,250 related to this issuance. The value was based on the fair value of the Company’s common stock.

 

On April 10, 2019, the Company issued 1,000,000 shares to King Hemp NM as part of the formation of the King JV (Note 5). The shares were valued at $500,000 based on the $0.50 fair value of the stock on April 10, 2019. The $500,000 was recorded as an equity investment to the King JV.

 

On April 12, 2019, the Company issued 2,125,000 shares to Hydro Dynamics, Inc. as part of the Hydro technology license acquisition (Note 5). The shares were valued at $1,593,750 based on the $0.75 fair value of the stock on April 12, 2019 and were expensed during the period since the license did not meet the definition of an intangible asset.